Thursday, May 26, 2011

Final Project: Marketing Mix - Distribution

There are a few routes a company can go about to distribute their product. One that is often used for high-end or upscale products is exclusive distribution. Exclusive distribution means that "the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories" (Marketing: An Introduction, Armstrong, Kotler, pg. 324). Certain vodkas are distributed exclusively (Diva, which goes for $70+, depending how many stones [that includes diamonds!] your bottle has).
Another form of distribution is intensive distribution, which means the producer "stocks the product in as many outlets as possible" (Marketing: An Introduction, Armstrong/Kotler, pg. 324). These are the vodkas you would find in supermarkets or gas stations. And that is exactly where you'll find Ergo: in the liquor section of your nearest grocery store. We decided to distribute our vodka intensively because we want to make sure that everyone has available to them the Ergo experience. Sold in a four-pack, Ergo makes it possible for you to carry the party with you (and make runs back to the 24 hour market if need be).

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